The economy has never been stable. There ups and downs and the prices of goods are continually inflating. With all these uncertainties, are you financially stable? For how long? Several business have been forced to close resulting to high unemployment rate which in turn makes many homes face foreclosure. With all these unfortunate events, how will you determine whether or not to file bankruptcy?
There are various circumstances to determine whether one should file for a bankruptcy. The experienced Bankruptcy Attorneys at Van Tubergen, Treutler, & Hayes will help you for this process in a little less painstaking way for you to achieve a fresh financial start.
Questions to ponder
- What are the financial problems that have caused your economic distress?
- Do you have credit card debt?
- Are you in foreclosure?
- Have you received overdraft notices from your financial institution?
- Are you receiving repeated telephone contact from collection agencies?
Having those problems will be an overwhelming experience for you. You will be needing a legal aid with deep knowledge of bankruptcy law.
Chapter 7 Bankruptcy
- designed to discharge most consumer and individual debt to achieve a fresh start
- if you are unemployed and have no other means of support
- determined by a Means Test, a form used to compare your income with families of like size and location
- for example, if your family income is below the average median income in your area and you have no other way to pay your bills and other creditors the bankruptcy court may approve your filing under Chapter 7
Chapter 13 Bankruptcy
When your financial situation exceed the income requirements for filing Chapter 7 Bankruptcy, or you have a debt which cannot be legally discharged by the court, Chapter 13 Bankruptcy may the best plan for you. This is also a suitable option when you have a property or an asset to protect.
In Chapter 13, you will be given a three to five years repayment schedule in which you will pay off an amount agreed upon. However, a constant stream of income and available assets is needed so you will be qualified.
When Chapter 13 is filed, an automatic stay imposed by the courts stops the foreclosure process temporarily. You must bring the arrange payments within the reasonable time, if you fail to do so, you may lose your home. Therefore, regular payment on your mortgage is necessary.
The amount of payment and the months of repayment vary among all debtors filing under Chapter 13. Debtor's property value, income, and expenses all determine the makeup of the plan. Those creditors who are unsecured will generally receive a percentage of the amount owed by the debtor. This plan must be reviewed and approved by the bankruptcy judge at a confirmation hearing.
Dealing with financial crisis is not an easy task. You will be needing the support of other people including your family. On the other hand, Bankruptcy Attorneys at Van Tubergen, Treutler & Hayes will be your legal support while having tough times.
Contact our expert bankruptcy attorney in Grand Haven, Holland, and Muskegon, Michigan at 616-844-3000.